You have been given the following information on the Crum Company. Crum expects sales to...
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You have been given the following information on the Crum Company. Crum expects sales to grow by 40 percent in the next year and operating costs should increase in proportion to sales. Fixed assets were being operated at 80% of capacity. Current assets and spontaneous liabilities should increase in proportion to sales during the next year. The company plans to finance any external funds needed as 60 percent long-term debt and 40 percent short-term debt. The interest rate to be used is 7 percent. The dividend payout ratio will remain constant. Using the forecasted financial statement method, what is next years interest expense?
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